When Recording the Use of Direct Materials (Measured in Kilograms)

question 30

Multiple Choice

When recording the use of direct materials (measured in kilograms) in the production process, work in process inventory is debited for which of the following?

• A) Standard quantity of direct materials used for actual production output times actual cost per kilogram
• B) Actual quantity of direct materials used times standard cost per kilogram
• C) Standard quantity of direct materials used for actual production output times standard cost per kilogram
• D) Actual quantity of direct materials used times actual cost per kilogram

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Definitions:

Government Budget Deficit

An economic condition occurring when government expenditures exceed its revenue in a fiscal period.

Interest Rate

The percentage charged or earned on a principal sum of money or an investment over a specified period of time.

Net Capital Outflow

The difference between the domestic purchases of foreign assets and the foreign purchases of domestic assets.

Exchange Rate

The rate at which one currency can be exchanged for another.